Summary of Investment Information
Project Number
36620
Company Name
HABIB BANK LIMITED
Date SPI Disclosed
Apr 20, 2015
Country
Pakistan
Region
Middle East
Projected Board Date
Apr 8, 2015
Environmental Category
FI-1 - Significant
Status
Completed
Last Updated Date
Oct 6, 2023
Department
Regional Industry - FIG Asia & Pac
Industry
Financial Markets
Previous Events
Approved : Apr 8, 2015
Signed : Apr 13, 2015
Invested : Apr 13, 2015
Sector
Commercial Banking - General
Project Description
The proposed project comprises a common equity investment of up to US$75 million in Habib Bank Limited (“HBL” or “Bank”) through purchase of secondary shares being divested by the Government of Pakistan (“GoP”).
HBL is the largest commercial bank in Pakistan with a market share of around 15 percent in terms of total assets and deposits. As of December 31, 2014, HBL had total assets of US$18.6 billion, total deposits of US$15.2 billion and total equity of US$1.7 billion. HBL was established in 1941 and was the first commercial bank to be established in Pakistan. It was nationalized in 1974 as part of a program of public ownership of the financial industry. In 2004, it was privatized as part of the GoP’s policy of financial sector deregulation by sale of 51% shares (and management control) to Aga Khan Fund for Economic Development (“AKFED”). As part of the IMF Program and to completely privatize the Bank, the GoP is now in the process of selling its remaining 41.5% shares in the Bank through a recently concluded offer for sale. The formalities for this sale are expected to be completed in April 2015.
HBL is the largest commercial bank in Pakistan with a market share of around 15 percent in terms of total assets and deposits. As of December 31, 2014, HBL had total assets of US$18.6 billion, total deposits of US$15.2 billion and total equity of US$1.7 billion. HBL was established in 1941 and was the first commercial bank to be established in Pakistan. It was nationalized in 1974 as part of a program of public ownership of the financial industry. In 2004, it was privatized as part of the GoP’s policy of financial sector deregulation by sale of 51% shares (and management control) to Aga Khan Fund for Economic Development (“AKFED”). As part of the IMF Program and to completely privatize the Bank, the GoP is now in the process of selling its remaining 41.5% shares in the Bank through a recently concluded offer for sale. The formalities for this sale are expected to be completed in April 2015.
Associated Advisory Engagement
In June 2011, IFC entered into an Small Medium Enterprises (“SME”) Advisory Services (“AS”) agreement with HBL to provide capacity building in SME banking. This project concluded in June 2013. Subsequently, in July 2013, IFC launched a Rural Banking Advisory project with HBL to help develop new agriculture finance products aimed at farmers and rural SMEs. In 2014, IFC launched another advisory project with HBL to help the Bank improve its offerings to women employees and customers in Pakistan.
Sponsor / Cost / Location
Development Impact
E&S Category Rationale / Risks and Mitigation
Related Environmental Document
Contacts
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IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster